News

FOR IMMEDIATE RELEASE

Saturday, August 13, 2005

Contact: Rep. Tupac A. Hunter

Phone: (517) 373-1705

Contact: Rep. Gabe Leland

Phone: (517) 373-6990



LANSING - State Representatives Tupac A. Hunter (D-Detroit) and Gabe Leland (D-Detroit) held a joint Community Seminar in Detroit on Saturday, Aug. 13, to warn residents about predatory lenders.

"When lenders prey on consumers, they steal equity from families who have spent a lifetime building it and this must stop," said Hunter, who has introduced legislation that would help eliminate predatory lending abuses. "These lenders have taken advantage of borrowers when they are most vulnerable and we need laws to protect them. I hope our seminar helps my friends and neighbors in Detroit avoid these predators or break the cycle if one has fallen into the predators trap."

Predatory lending is when abusive lenders prey on consumers who are financially strapped, need quick cash and find traditional borrowing avenues closed to them. The terms of these risky loans often are not clearly explained, resulting in consumers paying excessive fees, paying for loans at a high percentage rate or taking out unjustifiably large loans.

Wayne County Commissioner Alisha Bell co-hosted the event, which informed people how they could avoid getting into a predatory lending situation. The seminar also taught people how they could get out of a predatory lending situation. Predatory lending practices cost Michigan citizens as much as $626 million every year and nearly all of it goes to lenders based outside Michigan.

"In a best case scenario, borrowers pay far more than necessary for a loan," said Leland. "In the worse cases, they lose their homes. Neither of these scenarios is acceptable. People are being victimized by these lenders and if it does not stop, predatory lending will continue to spread throughout our communities and state like a disease."